Core & Main Inc (CNM)
Interest coverage
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 721,000 | 711,000 | 591,000 | 593,000 | 594,000 | 706,000 | 775,000 | 752,000 | 705,000 | 573,000 | 635,000 | 619,000 | 732,000 | 767,000 | 713,000 | 659,300 | 480,300 | 499,800 | 386,800 | 339,100 |
| Interest expense (ttm) | US$ in thousands | 142,000 | 122,000 | 108,000 | 92,000 | 78,000 | 84,000 | 84,000 | 81,000 | 81,000 | 79,000 | 73,000 | 72,000 | 69,000 | 62,000 | 59,000 | 56,000 | 52,000 | 52,000 | 76,000 | 100,000 |
| Interest coverage | 5.08 | 5.83 | 5.47 | 6.45 | 7.62 | 8.40 | 9.23 | 9.28 | 8.70 | 7.25 | 8.70 | 8.60 | 10.61 | 12.37 | 12.08 | 11.77 | 9.24 | 9.61 | 5.09 | 3.39 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $721,000K ÷ $142,000K
= 5.08
Interest coverage ratio is a financial metric that indicates a company's ability to cover its interest expenses with its operating income. It is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. A higher interest coverage ratio signifies a stronger ability to meet interest obligations.
Analyzing the interest coverage ratios of Core & Main Inc from January 30, 2022, to January 31, 2025, provides insights into the company's financial health and its ability to manage interest costs. The trend in the interest coverage ratio indicates the company's changing ability to cover its interest expenses over time.
The interest coverage ratio for Core & Main Inc fluctuated over the period, starting at 3.39 on January 30, 2022, and peaking at 12.37 on October 31, 2022. This peak suggests a significant improvement in the company's capacity to pay interest obligations relative to its earnings during that period.
Subsequently, the interest coverage ratio declined, hitting a low of 5.08 on January 31, 2025. A decreasing trend in the interest coverage ratio may indicate a potential strain on the company's ability to cover interest expenses with its operating income.
Overall, while the interest coverage ratios for Core & Main Inc fluctuated over the period, it is essential for the company to maintain a healthy interest coverage ratio to ensure its financial stability and ability to meet its debt obligations. Monitoring this ratio over time will provide valuable insights into the company's financial performance and risk management.